Law enforcement authorities across the nation, such as the FBI, have cast a wide net in their efforts to root out corruption amongst neighborhood government officials overseeing the marijuana market.

The crackdown has ensnared neighborhood government and cannabis market officials in states such as California, Massachusetts and Michigan. Charges have integrated bribery and extortion.

Though claims of licensing bias and flawed scoring are much more prevalent, an examination of the landscape suggests that there have been a quantity of blatant efforts more than the years to improperly influence public officials into awarding hugely coveted marijuana licenses.

Such corruption, combined with flawed and biased licensing, undermines the course of action, hurting the possibilities for corporations that play by the guidelines, market authorities warn.

In California, for instance, neighborhood corruption became adequate of an challenge final year that it was identified as a hurdle for marijuana enterprise license seekers in the newly regulated state.

Elsewhere, Nevada’s cannabis licensing director not too long ago was placed on administrative leave soon after allegations of bias and improper conduct arose through court hearings associated to complaints from unsuccessful applicants about a current licensing round. He is no longer with the state’s Division of Taxation, which oversaw the cannabis market.

And in Fall River, Massachusetts, at least 4 enterprise owners allegedly paid a total of $600,000 in bribes to win Mayor Jasiel Correia’s help of marijuana license applications.

Correia not too long ago pleaded not guilty to various federal corruption charges.

Some marijuana market officials have welcomed the stepped-up enforcement.

“If we want to be a legal market, we require to act like it,” mentioned David McPherson, who leads the cannabis consulting group at California-primarily based HdL Cos. “Let’s be transparent and make it expert.”

He mentioned the market ought to demonstrate that it has practically nothing to be concerned about. And if the FBI finds anything, “then let’s clean it up.”

The Fall River case, in reality, is one particular of a quantity nationwide that federal authorities have investigated in current years as component of a probe into public corruption in the marijuana market.

The FBI highlighted its investigation in a current podcast, through which it also solicited suggestions from the public.

Douglas Berman, director of Ohio State University’s Drug Enforcement and Policy Center, wrote in a current e-mail to Marijuana Organization Day-to-day that the FBI podcast “may be a way to urge licensing officials to be confident to play by the guidelines.”

Here’s a roundup of some of the higher-profile alleged marijuana corruption instances in current years:

Arkansas

The restricted health-related cannabis enterprise licensing in Arkansas has spawned a quantity of lawsuits as effectively as an ethics complaint against a commissioner who did some legal perform for an applicant.

But one particular of the most curious instances involved an allegation that an MMJ cultivation applicant attempted to bribe a member of the Arkansas Healthcare Marijuana Commission. The allegation surfaced in a letter to the Arkansas Supreme Court from state Lawyer Common Leslie Rutledge.

The commissioner, Carlos Roman, in turn was criticized for providing a higher score to the applicant, and some accused Roman of sharing data to support the enterprise with its application. He denied undertaking so.

The Arkansas Democrat-Gazette obtained a video of a meeting involving the commissioner and the applicant.

In the video, the businessman can be heard telling Roman he appreciated his support and adds, “If I owe you anything, let me know.”

The commissioner responds that a sort word to the state Senate President that he ought to be reappointed would be enough. Roman told the newspaper he reported the incident to the FBI.

Roman completed his term and wasn’t reappointed. A state MMJ spokesman mentioned Roman is not below investigation.

Arkansas had no rule banning private discussions involving a commissioner and a marijuana license applicant, according to the newspaper.

California

Federal authorities in November 2017 charged Adelanto, California, Mayor Pro Tem and City Councilor Jermaine Wright with attempted arson and bribery.

Wright allegedly solicited and accepted a $10,000 bribe from an undercover FBI agent to help a marijuana enterprise in getting a license.

Wright pleaded not guilty. His trial has been scheduled for Feb. 25, 2020.

The FBI in May well 2018 raided the house of then-Adelanto Mayor Wealthy Kerr as effectively as a marijuana dispensary as component of an ongoing probe into the city’s relationships with cannabis corporations. No charges have been filed against Kerr.

Kern County, California, Supervisor Leticia Perez was charged final year with two misdemeanors relating to alleged conflict of interest violations. She pleaded not guilty to the charges, claiming they are primarily based on political retaliation and are racially driven.

A single charge stemmed from a vote on a marijuana challenge in which her husband, a cannabis lobbyist, had received $25,000 from a enterprise to arrange meetings with county officials.

Massachusetts

Earlier this month, two Massachusetts males pleaded guilty in federal court to charges that they extorted cash on behalf of Correia, the Fall River mayor, from organizations searching for to get recreational marijuana cannabis licenses.

Correia, as noted earlier, faces federal corruption charges, which he denies.

He refused to step down regardless of becoming voted temporarily out of workplace by the City Council. The City Council has sued to take away Correia from workplace.

Michigan

3 household members – Mike Baydoun, Ali Baydoun and Jalal Baydoun – pleaded guilty to federal charges associated to a bribery scheme to get a health-related marijuana dispensary and cultivation facility licensed in Garden City, west of Detroit.

A single of the males allegedly handed a city official an envelope containing $15,000 – $five,000 for each and every of 3 council members. The official turned the envelope more than to the FBI.

Prosecutors mentioned the males have been prepared to spend as a great deal as $150,000 to get the permits authorized and also supplied city officials a 25% reduce of the earnings in return.

Issues about possible corruption prompted then-Michigan Gov. Rick Snyder to request that state police investigate no matter whether regulators have been taking bribes in exchange for health-related marijuana licenses.

Jeff Smith can be reached at [email protected]